Transcript Chapter 23

Chapter 22
The New Deal
Section 1 – Forging a New
Deal
• Goals:
– Help people find jobs
– Provide relief in the form of $
– Restore the economy
• The New Deal had 3 phases
– Relief – provide $ and jobs to people
– Recovery – recover agriculture and industry
– Reform – change economic structure to
prevent another depression
Banking Crisis
• Roosevelt used “fireside chats” talking
over the radio to the public to ease fear
and panic
• Bank closing was 1st priority – instituted
Emergency banking act
– Closed all banks (holiday)
– Ordered all banks be inspected for stability
– Opened banks as they were deemed
financially stable (2/3 opened within 6 days)
First New Deal
• First 100 days of FDR administration
• Much legislation implemented – not
passed by congress (emergency)
• Called alphabet soup – initials used to
define laws
• New Deal based on idea of “Pump
Priming” (government pouring $ into the
economy to get economy flowing)
1st New Deal Relief Legislation
• F.E.R.A. – Federal Emergency Relief
Administration – directed by Harry Hopkins
(provided $ for relief agencies and public works
programs
– C.W.A. – build roads, parks, and airports
• P.W.A. – Public Works Administration –
sponsored huge public works projects (ex. –
dams)
– Established by the National Industrial Recovery Act
– led by Sec. of Interior Harold Ickes (Grand Coulee
dam and Causeway for Florida Keys were major
projects)
1st New Deal Relief Legislation
• C.C.C. – Civilian Conservation Corps –
provided jobs to young single men to work
on environmental conservation programs
(2 ½ million men restoring parks, forests,
and beaches
• T.V.A. – Tennessee Valley Authority –
public works project to build hydroelectric
dams on Tenn. River to provide cheap
electric power, flood control and
recreational opportunities
1st New Deal Recovery
Legislation
• N.I.R.A. – National Industrial Recovery Act –
– Established the P.W.A. and N.R.A. – National
Recovery Administration - established codes of fair
competition for business
• A.A.A. – raise farm prices through subsidies –
tax to pay farmers not to grow crops and animals
(many animals killed and crops burned) idea
was to lower production to raise prices
Reform Laws of New Deal
• F.D.I.C. – Federal Deposit Insurance
Corporation – Insured people’s bank deposits up
to $5000
• S.E.C. – Securities Exchange Commission –
oversee and regulate the stock market and
make it a safer place for investments.
1st New Deal Continued
• John Collier (headed community of Indian
affairs) - used Native Am. To build
schools, hospitals, and irrigation systems
• Indian Reorganization Act – restored
ownership of some lands to Native Am.
• Supreme Court declared AAA and NIRA
unconstitutional
THE SECOND NEW DEAL
2nd New Deal
• Imposed higher taxes on wealthy and included more welfare
benefits – stronger support for unions
• W.P.A. – provided work for over 8 million in constructing
playgrounds, schools, hospitals, and airfields – it also
supported creative work for artists and writers
• Social Security – Sec. of Labor (Francis Perkins) –
1st female cabinet member (2nd New Deal)
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Old age pensions and survivor benefits
Unemployment insurance for lost job
Aid blind – handicapped – or dependent children
$ comes from workers and employers pay = into an
insurance fund
2nd New Deal
• Farm Securities Administration – loan $ to farmers and set
up camps for migrant workers
• F.L.S.A.- Fair Labor Standards Act – established minimum
wage and banned child labor.
• Wagner Act (NLRA – National Labor Relations Act) –
legalized collective bargaining and closed shops
• 1936 election – FDR won in a landslide over Alf Landon
Section 2 New Deal Critics
• Women and African Americans – said New Deal
offered more opportunities to white men (women
and African Americans are paid less for same
work
• Progressives and Socialists – programs are not
doing enough to solve nations problems (need
to do more to distribute nations wealth among all
• Republicans and other political opponents –
Government is too powerful (FDR is like a
dictator - taxes on wealthy is unfair and too
socialistic
– American Liberty League – opposed socialist policies
and said government trampled on individual freedoms
Demagogue Critics
• Huey Long – Louisiana Senator that promoted a
share the wealth program (Would have run for
president in 36 but was assassinated)
• Father Coughlin – Radio priest from Detroit
(fascist minded blaming banking system for
depression)
• Dr. Townshend – from California (wanted to
force all over 60 to retire opening up jobs for
younger and give elderly monthly pension which
they would have to spend every month to
stimulate the economy
New Deal Limits
• FLSA – only effected ¼ of workers and minimum
wage less than what most earned
• The New Deal offered no help for domestic
services
• Social Security excluded farmers and domestic
service workers and 2/3 of African American
workers
• Nothing done to end discrimination toward
blacks
FDR and Supreme Court
• FDR upset about supreme court declaring laws
unconstitutional
• He proposed a major court reform bill
• It would add an additional judge for every one
over 70 years old (6 judges) making a total of 15
• Congress very opposed – also hurt his
popularity with people
• Lost battle but 1-2 judges died or retired and
were replaced so no more new deal measures
were declared unconstitutional
Section 3 - Last Days of New
Deal
• 1937 FDR ended some new deal
programs which caused another major
decline in the economy (programs had to
be restarted)
• Union Triumphs – John L. Lewis formed
the CIO which broke from the AFL and
operated separately for unskilled workers
– Used sit down strike – prevented company
from bringing in scabs or sub workers
(outlawed by courts in 1939)
New Deal Effects
• On Society – bridges- dams- tunnels still in use
• Social Security and laws regulating banks and
stock market still important today. Our country
became more socilistic.
• Changed the way people thought about the
government and president (government
involvement more accepted)
• Many now accepted idea of government welfare
and handouts
• The new deal did not end the depression but it
helped the country to survive it